• Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 19 Fixed costs per month: Fixed manufacturing overhead $ 96,000 Fixed selling and administrative 160,000 Total fixed cost per month $ 256,000 The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced Units Sold July 24,000 20,000 August 24,000 28,000 The company’s Accounting Department prepared the following absorption costing income statements for July and August: July August Sales $ 940,000 $ 1,316,000 Cost of goods sold 440,000 616,000 Gross margin 500,000 700,000 Selling and administrative expenses 180,000 188,000 Net operating income $ 320,000 $ 512,000 Required: Determine the unit product cost under: Absorption costing. Variable costing. Prepare variable costing income statements for July and August. Reconcile the variable costing and absorption costing net operating incomes.